Dec 07, 2022  
2020-2021 Undergraduate Academic Catalog 
2020-2021 Undergraduate Academic Catalog [ARCHIVED CATALOG]

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MA 390 - Financial Mathematics

4 lecture hours 0 lab hours 4 credits
Course Description
This course will the last course which prepares students for the second actuarial exam, referred to as Exam FM by the SOA, and Exam 2 by the CAS. It will review and/or cover the topics such as time value of money, annuities, loans, bonds, cash flow, and portfolios, immunization, general derivatives, options, hedging, forwards and futures and swaps. (prereq: BA 2503 , AS student, or consent of the program director)
Course Learning Outcomes
Upon successful completion of this course, the student will be able to:
  • Demonstrate knowledge of the fundamental concepts of financial mathematics
  • Demonstrate an ability to apply these concepts in calculating present and accumulated values for various streams of cash flows as a basis for use in: reserving, valuation, pricing, asset/liability management, investment income, capital budgeting, and valuing contingent cash flows
  • Show introductory knowledge of financial instruments, including derivatives, and the concept of no-arbitrage as it relates to financial mathematics
  • Successfully complete the FM exam

Prerequisites by Topic
  • Business finance and accounting knowledge 

Course Topics
  • General cash flows and portfolios
  • Immunization
  • General derivatives
  • Options
  • Hedging and investment strategies
  • Forwards and futures
  • Swaps

Dr. Yvonne Yaz

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